Brown, McCaskill, And Sanders Fighting The Good Fight

One of my favorite Democrats in the Senate is Sherrod Brown. If you watched any news this past weekend, you were treated to his pissing off the insufferable Orrin Hatch, during a meeting of the Senate Finance Committee last Thursday night.

Brown called bullshit on the Republican claim that their tax “reform” bill was all about increased incomes for middle-class folks. The senator from Ohio said:

I just think it would be nice, just tonight, before we go home, to just acknowledge, well that this tax cut really is not for the middle class, it’s for the rich. And that whole thing about higher wages, it’s a good selling point, but we know companies just don’t give away higher wages. They just don’t give away higher wages just because they have more money. Corporations are sitting on a lot of money now. They’re sitting on a lot of profits now. I don’t see wages going up. So, just spare us the bank shot, spare us the sarcasm and the satire, and let’s move forward.

Hatch, of course, grew indignant and began touting his former impoverishment, saying,

I come from the poor people, and I’ve been here working my whole stinking career for people who don’t have a chance, and I really resent anybody saying I’m just doing it for the rich. Give me a break. I think you guys overplay that all the time, and it gets old. And, frankly, you ought to quit it…I get kind of sick and tired of it.

Now, one has to credit Hatch for properly calling his career “stinking.” But beyond that, anyone who thinks he has spent that stinking career working “for the [sic] poor people,” for “people who don’t have a chance,” I have a degree from Tr-mp University I’ll sell ya. As for Hatch being sick and tired, Brown said:

I get sick and tired of the richest people in this country getting richer and richer and richer….

He was gaveled down by the snowflake from Utah.

That leads me to my own senator, Claire McCaskill, who was just here in Joplin for a town hall-style meeting on Saturday (she was rudely treated by only one right-winger in the audience; that’s progress). During the meeting, she tried to educate the locals:

As I go around the state, particularly in some of the rural communities, where it is tough in terms of jobs and it is tough in terms of the AG economy, so, talking about a tax code that we could reform to really help those folks, but instead, Republicans are putting forth a bill that is really focused on people that make more than $1 million dollars.

McCaskill doesn’t just talk truth about Republicans while here in Missouri. She also had a few things to say during a Senate Finance Committee meeting last week, also featuring Orrin Hatch:

Clearly, that notorious fighter for the poor, Mr. Hatch, had no idea what was in the bill he was defending. But, aw shucks, neither does the man Republicans are counting on to sign it, should they succeed in ramming it through Congress.

Now we come to an appearance by Bernie Sanders on CNN’s State of the Union. Here is the Vermont senator’s exchange with host Jake Tapper:

TAPPER: President Trump is accusing Democrats of being obstructionists on the tax issue. He tweeted — quote — “If Democrats were not such obstructionists and understood the power of lower taxes, we would be able to get many of their ideas into the bill.” What’s your response?

SANDERS: Well, that’s total nonsense. Democrats have been completely shut out of this process, just as they were shut out of the health care legislation process. Here is the fact. And Trump should understand this. What this legislation is about is fulfilling the promises, Republican promises, made to wealthy campaign contributors. There is a reason why the billionaire class provides hundreds of millions of dollars in campaign contributions to Republicans. And now is payback time.

What this legislation is about, Jake, is giving 50 percent of the tax benefits to the top 1 percent, and at the end of 10 years in the House bill, forcing almost 50 percent of the middle class to actually pay more in taxes. What this legislation is about, absolutely insanely, is repealing the estate tax, a $269 billion tax break, not for the top 1 percent, but for the top two-tenths of one 1 percent, a handful of the wealthiest families in this country, like the Walton family and the Koch brothers family and other very wealthy families….And, by the way, Jake, one other point.

When they run up a $1.5 trillion deficit, as they will in this legislation, they’re going to come back — and that’s what Paul Ryan is saying — they’re going to come back with massive cuts to Social Security, Medicare and Medicaid, because they say, oh, my goodness, the deficit and the national debt are too high.

This is a terrible, terrible piece of legislation, and it must be defeated.

That was quite a takedown of the phony Republican tax (and, for now, healthcare) bill. But Sanders wasn’t finished:

TAPPER: So, Republicans’ response to the idea that 50 percent is going to the top 1 percent is, the top 1 percent pays a disproportionate amount of taxes. I do want to better understand your objection to this aspect of the bill. Is it the size of the tax cut going to the wealthy that bothers you or the idea that the wealthy are getting any tax cut at all?

SANDERS: Well, first of all, what the Republicans are forgetting about is, yes, the rich pay more in taxes because we have massive income and wealth and equality in America. Fifty-two percent of all new income in America is going to the top 1 percent. Duh. Yes, the rich are going to be paying more in taxes.

Now, Sanders just about said it all right there—just about. The most beautiful part of what he said, the most concise framing of the issues voters may hear in the next two election cycles, was what he said next:

SANDERS: But does anybody watching this program really believe that the major crisis facing our country—when the middle class is shrinking, when our infrastructure is falling apart, when young people can’t afford to go to college, are leaving school deeply in debt, when 28 million people have no health insurance—does anyone really think that the major crisis facing this country is the need to give hundreds of billions of dollars in tax breaks to the very richest people in this country?

That was what wrestling fans might call a flying spinning heel kick. In one sentence, in 81 extemporaneous but eloquent words, Sanders struck his Republican opponents with the truth. 

Good for him. And although Republicans won’t listen, if voters do, good for the country.

 

What Dave Camp’s Tax Reform Proposal Tells Us About Our Political System

Most people, until a few days ago, hadn’t heard of Dave Camp, the Republican chairman in charge of the House Committee on Ways and Means. That powerful committee has, among other things, jurisdiction over Social Security, Medicare, unemployment bennies, food stamps (TANF), and federal tax policies.

And regarding those tax policies, the committee chairman has been working on tax reform for a long time. This week, to the chagrin of many Republicans in the House and elsewhere, Dave Camp, who will soon be term-limited out of his continuing chairmanship of the committee, released his work product, the Tax Reform Act of 2014. And, somewhat surprisingly, some on the left are taking it seriously, even if it is revenue neutral and has other flaws. But not so surprisingly, partly because some on the left can take the proposal seriously, is that the usual money-holding suspects on the right are pooh-poohing it.

You can see the details of the proposal all over the place (here is a relatively thoughtful conservative critique), but liberal commentator Jonathan Chait began his short analysis of the plan by saying that Camp’s tax-reform proposal,

does something remarkable: It actually reforms the tax code. It doesn’t use the pretense of reform to shift the tax burden off the rich, as Republican “tax reform” plans usually do, and it does not use hand-waving to gesture in the direction of reform without following through. Camp has actually plunged his hands into the guts of the tax code and pulled out item after item. It may be the most impressive and ambitious domestic policy proposal crafted by a major Republican in a generation.

Chait notes how folks like the writers of The Wall Street Journal editorial page have “spent decades building a shrine to the spectacular wrongness of supply-side economics,” and then he gives Camp credit for not championing that spectacular wrongness:

The evidence suggests that cutting tax rates, financed by deficits, does little or nothing to spur economic growth. But Camp’s plan doesn’t do that. It instead reduces tax rates by eliminating preferences in the tax code. Subsidies for home mortgage debt and employer-sponsored insurance, among others, would be radically scaled back. And eliminating these kinds of favoritism encourages workers and businesses to instead follow market signals, and likely to make more market-friendly decisions.

Of course, Chait, as a liberal, notices all kinds of things wrong with Camp’s plan. Camp, after all, is a Republican, so it is no surprise that no new revenues will be raised if his plan were to become law, or that “oil drillers” are taken care of while “green energy” suffers. But Chait also points out something in Camp’s plan that has pissed off Wall Street banksters:

His plan would impose a new fee on large banks (which enjoy an implicit subsidy by virtue of being so large they’re apt to receive a bailout if they fail) and caps the value of tax deductions, both goals embraced by Obama. It eliminates the carried interest loophole. It sets the top tax rate at 35 percent, not the fantastical 25 percent rate proposed by Mitt Romney, Paul Ryan, and other Republicans. Camp is actually committed to the goal of reforming the tax code in a way that maintains (rather than reduces) revenue levels, and holds the relative burden on the rich and poor constant.

The reaction to this part of Camp’s legislation is at once predictable and disturbing. Just look at this headline from Politico yesterday:

Wall Street threatens GOP on bank tax

First line: “Wall Street is warning Washington Republicans: The money spigot is turning off.”

Then: “Rep. Dave Camp’s tax proposal — which jacked up taxes on banks and threatens the bottom line of big bankerssome major private equity players in New York — has infuriated donors in high finance.”

As I say, that reaction is not surprising. But it ought to disturb all Americans, including Tea Party Republicans, whose 2009 movement began, at least ostensibly, as a populist reaction to the bailout of the financial industry, a group of greedy folks who helped wreck the economy. None of us should put up with the kind of extortion suggested by that Politico headline. None of us should tolerate the idea that people with lots of money can buy our politicians like they were buying shares in a widget company. None of us. This is our democracy we are talking about, for God’s sake.

The Politico article continues:

Lobbyists for Bank of America, Goldman Sachs and JPMorgan and others are meeting privately with lawmakers to explain what the bank tax would cost and how it would function.

Big banks want to turn Republicans against the bank tax. The situation puts the party at risk of seeing a reliable source of campaign cash dry up right in the middle of a critical election year.

And:

Without Wall Street, Republicans risk their coffers emptying. The securities and investment industry is the largest contributor — besides candidate committees — to the National Republican Congressional Committee this cycle, directing $3.5 million to the party committee, according to the Center for Responsive Politics. In the 2012 election cycle, the financial services industry ponied up nearly $9.9 million.

Let’s be clear: Democrats, most of whom favor campaign finance reform, also take money from rich people. They have to, if they are to survive in this money-driven, anti-democratic system. But all of us, even the most rabid Tea Party “patriot” out there, ought to get angry over what money has done and is doing to our political system. An earnest Republican comes along with some ideas that are not completely based on phony trickle-down economics, and he, or rather his proposal, is shot dead on the spot by people whose guns don’t shoot bullets but big bucks.

Let me leave you to contemplate what Roll Call’s David Hawkings said about what the new reform proposal, not even considering its policy ideas, will do:

The Camp bill may be properly cited as The Tax Lobbyists’ Full Employment and Economic Stimulus Act of 2014.

Even though the measure is highly unlikely to make it onto the House floor — and will struggle to get a majority from the roster of 23 Republicans and 16 Democrats during its not-going-to-be-scheduled-anytime-soon markup at Ways and Means — law firms and K Street shops will generate countless billable hours just by parsing the bill’s language and coming up with strategies for preserving all the niche deductions, exclusions and exemptions that have only theoretically been placed in jeopardy.

If those lobbyists didn’t have connections to moneyed interests who give tons of dough to our politicians, and if our politicians worked in a system where they didn’t depend on rich people giving them tons of dough to get elected, then our politicians perhaps would properly weigh the input of those lobbyists, rather than give them all the influence that money can buy.

And shame on us—all of us—for putting up with it.

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